The Connecticut-based hotel and leisure company, Starwood Hotels and Resorts Worldwide has announced the sale of Sheraton on the Park, a landmark Sydney hotel to China’s Sunshine Insurance Group for A$463 million ($399 million; €321.5 million).
“We are pleased to advance our asset-light strategy with the sale of the iconic Sheraton on the Park hotel and look forward to working closely with SIG to ensure its continued success,” Simon Turner, president of global development for Starwood said in a statement. “The terms of this sale underscores the strength of the Sheraton brand and the success of the hotel as well as the tremendous value of this property in a high barrier to entry market.”
The hotel is located opposite Hyde Park in Sydney.
“Sheraton on the Park will diversify our holdings by giving us a trophy asset in Sydney –a leading travel destination and an important financial center in Asia-Pacific,” an executive director of Sunshine Insurance Group’s acquisitions team said in a statement. “As Starwood’s largest and most global brand, Sheraton has cultivated a loyal following by offering travelers a stylish, comfortable atmosphere and a social guest experience.”
This deal is yet another example of the heightened interest by Chinese investors in landmark office and hotel properties in overseas and Asian markets. Following the relaxation of regulation for Chinese insurance groups to invest in real estate, a number of groups have upped their overseas investments. One of the most high profile recent deals was Chinese insurer Anbang’s $1.95 billion acquisition of New York’s landmark Waldorf Astoria hotel in October this year.